Google Local Services Ads Move to Performance Max

Google has confirmed a major change to Local Services Ads:

eligible LSA campaigns will gradually move from the standalone Local Services Ads dashboard into the main Google Ads platform.

The migrated campaigns will be managed as Performance Max campaigns with pay-per-lead goals. However, despite the Performance Max name, these campaigns will not operate like traditional Performance Max campaigns that can advertise across YouTube, Display, Discover, Gmail and other Google channels.

The new Local Services campaign format will remain focused on connecting local customers with verified service providers through Google Search and Google Maps.

The first migration phase is scheduled to begin in the United States in August 2026. Google currently expects non-US advertisers, including eligible Australian businesses, to transition during 2027.

For local service providers, the update represents more than a dashboard redesign. It changes how campaigns, budgets, bidding, leads, business information and historical reports will be managed.

What Is Changing With Google Local Services Ads?

Local Services Ads have traditionally been managed through a separate platform from standard Google Ads campaigns. Businesses could use the Local Services Ads dashboard to manage service categories, locations, budgets, leads and account information.

Under the new system, Local Services campaigns will be brought into Google Ads and presented as a specialised Performance Max campaign with a pay-per-lead goal.

Advertisers will be able to manage Local Services campaigns alongside their Search, Shopping and other Performance Max campaigns from one central Google Ads account.

The change is intended to create a more unified campaign management experience while retaining the key characteristics that make Local Services Ads different from standard pay-per-click advertising.

Are Local Services Ads Being Replaced by Traditional Performance Max?

No. Local Services Ads are not becoming standard cross-channel Performance Max campaigns.

This distinction is important because conventional Performance Max campaigns may distribute ads across multiple Google properties, including:

• Google Search
• Google Maps
• YouTube
• Google Display Network
• Discover
• Gmail

The new Performance Max campaigns created specifically for Local Services Ads will retain a much narrower reach.

According to Google, Local Services campaigns will continue appearing only in relevant local placements on Google Search and Google Maps. They will not automatically expand to YouTube, Display, Discover or Gmail.

In practical terms, Google is bringing Local Services Ads into the Performance Max campaign infrastructure without turning them into standard all-channel Performance Max campaigns.

Will Local Services Ads Still Be Pay Per Lead?

Yes. The pay-per-lead billing model will remain.

Standard Google Search campaigns normally charge an advertiser when someone clicks an ad. Local Services Ads operate differently because advertisers are generally charged when a potential customer contacts the business through an eligible lead action.

Depending on the business category and available features, these actions may include:

• Phone calls
• Direct messages
• Appointment or booking requests
• Other eligible customer enquiries

The migration into Google Ads does not mean Local Services advertisers will suddenly start paying for every click. Eligible campaigns will continue to use the Local Services pay-per-lead model.

Will Local Services Campaigns Use Keywords?

Local Services campaigns will remain keywordless.

Advertisers will not build conventional keyword lists in the same way they would for a Google Search campaign.

Instead, Google uses information about the business, including its approved services, business category, service areas, location and Google Business Profile, to determine when an ad may be relevant to a local search.

This makes the quality and accuracy of the advertiser’s business information increasingly important.

Google Business Profile Information Will Sync Automatically

One of the most significant parts of the update is tighter integration between Local Services campaigns and Google Business Profile.

At present, advertisers may need to maintain certain business information separately across Google Business Profile and the Local Services Ads platform.

After migration, core details such as the following may sync directly from the connected Google Business Profile:

• Business name
• Physical address
• Standard opening hours
• Business photos
• Other supported business details

This should reduce duplicate administration and help prevent inconsistencies between an advertiser’s Google Business Profile and Local Services campaign.

However, automatic syncing also means businesses must take greater care when updating their profiles. An inaccurate address, outdated opening hours, poor-quality images or an incorrect business category may affect more than organic local visibility. It may also affect paid Local Services campaign information.

The Standalone Local Services Ads Dashboard Will Be Retired

Once an account completes its migration, campaign management and lead handling will move into Google Ads.

The separate Local Services Ads dashboard will no longer remain the main management interface for migrated advertisers.

Google Ads Lead Manager is expected to replace the existing Local Services Ads inbox, allowing advertisers to review and respond to Local Services leads from within Google Ads.

For agencies and businesses already managing Search and Performance Max campaigns, having campaigns and leads in one platform may make account access, monitoring and reporting more efficient.

However, the change may also require updates to internal processes, user permissions, client reporting templates and lead-management responsibilities.

Weekly Budgets Will Change to Daily Budgets

Local Services Ads have traditionally been managed using an average weekly budget. After migration, advertisers will manage an average daily budget through Google Ads.

This does not necessarily mean businesses will spend more, but the way budgets are displayed and controlled will change.

Advertisers should review the daily budget created during migration and compare it with their previous weekly and monthly spending expectations.

Businesses should also monitor spending patterns during the initial learning period rather than assuming the converted daily budget will deliver exactly the same lead volume from day one.

Manual Cost-Per-Lead Bidding Will No Longer Be Supported

Some Local Services advertisers have previously been able to set a maximum cost per lead through manual bidding.

Under the new campaign format, manual bidding will no longer be supported. Campaigns will rely more heavily on Google’s automated bidding system.

Google will also move toward a campaign-level Target CPA rather than allowing separate target amounts for every service category within the same campaign.

This may create an important strategic decision for businesses offering services with very different:

• Lead costs
• Profit margins
• Close rates
• Customer lifetime values
• Seasonal demand

For example, an electrical contractor may generate leads for emergency call-outs, switchboard upgrades and large commercial projects. Treating every category under one campaign-level acquisition target may not reflect the true value of each lead.

In some cases, separating major service categories into different campaigns may provide better control. However, dividing campaigns too aggressively can also reduce the volume of conversion data available to Google’s bidding system.

The correct structure will depend on lead volume, conversion quality and the commercial value of each service.

Historical Performance Reports Will Not Migrate

This is one of the most important actions for existing Local Services advertisers.

Google has stated that historical performance reports from the standalone Local Services Ads dashboard will not transfer into Google Ads.

Although certain lead information may transfer, advertisers should not assume their full historical reporting data will remain available after migration.

Before an account is moved, businesses and agencies should download the reports required for:

• Year-on-year comparisons
• Cost-per-lead analysis
• Lead-quality reviews
• Client reporting
• Budget planning
• Seasonal performance analysis
• Internal financial records

Losing this data could make it difficult to compare future campaign results with previous performance.

Google’s Local Services Ads Migration Timeline

Google is planning a phased migration rather than moving every advertiser simultaneously.

August 2026

The first phase will begin with selected home-service and storefront-service advertisers in the United States.

Google’s initial categories include services such as plumbing, HVAC, electrical work, appliance repair, house cleaning, lawn care, roofing, pest control and moving services.

Late 2026

The rollout is expected to expand to broader groups of US advertisers, including certain service-area businesses and accounts using more complex bidding or booking configurations.

2027

Google currently expects non-US accounts and remaining business categories to transition during 2027.

This means Australian Local Services advertisers are not expected to be included in the initial August 2026 migration. Australian businesses should nevertheless begin preparing their profiles, reporting systems and account access before the international rollout begins.

How Will Advertisers Know When Their Account Is Migrating?

Google says account administrators will receive advance notice before migration.

The listed account administrator is expected to receive an email approximately 14 days before the migration date, followed by another reminder around seven days later.

Google will also display notifications in the existing Local Services Ads dashboard and send confirmation after the migration has been completed.

Businesses should confirm that the correct administrator email address is attached to the account and that the relevant person actively monitors that inbox.

What Will Transfer Automatically?

Google intends to automate much of the migration process to minimise campaign interruption.

Existing campaign information expected to transfer includes:

• Target locations
• Approved service types
• Business categories
• Budget limits
• Advertising schedules
• Business photos
• Other eligible campaign settings

Even with an automatic transfer, advertisers should complete a full account audit after migration.

Automated migration does not guarantee that every setting will remain commercially appropriate under the new bidding and budget structure.

What Should Australian Local Businesses Do Now?

Australian businesses may have additional preparation time because non-US migrations are currently planned for 2027. That time should be used to improve the quality of the information and data that will support future automated campaigns.

1. Audit Your Google Business Profile

Check that your business name, primary category, secondary categories, address, service areas, opening hours, phone number, website and photos are accurate.

Because more campaign information will be sourced from Google Business Profile, profile quality will play an increasingly important role in paid local advertising.

2. Download Historical LSA Reports

Do not wait until the final migration notification. Export historical reports while the current dashboard is still accessible.

Save the data in a secure location and record the reporting period covered by each export.

3. Review Account Administrators and Access

Confirm that the correct business owner, marketing manager or agency has administrator access.

This will help ensure that migration notices are received and campaign access is not interrupted.

4. Review Lead Quality, Not Just Lead Volume

Before automated bidding becomes more central, identify which services generate the most valuable customers.

Compare:

• Cost per lead
• Valid lead rate
• Quote rate
• Booking rate
• Sales conversion rate
• Average job value
• Customer lifetime value

This analysis will help determine whether different services should remain in one campaign or be separated after migration.

5. Improve Call and Booking Processes

Generating a lead is only the first stage. Slow responses, missed calls and poor follow-up can turn a cost-effective advertising campaign into an unprofitable one.

Businesses should establish clear processes for answering calls, responding to messages, confirming appointments and recording lead outcomes.

6. Review Your Wider Google Ads Strategy

Local Services Ads should not automatically replace every other campaign type.

Depending on the business, the strongest strategy may combine:

• Local Services Ads
• Google Search campaigns
• Brand-protection campaigns
• Location-specific landing pages
• Google Business Profile optimisation
• Local SEO
• Conversion tracking
• Call tracking and offline conversion data

Each channel serves a different purpose. Local Services Ads can capture high-intent local enquiries, while Search campaigns may provide more control over keywords, ad messaging and landing pages.

What Does This Mean for Local SEO?

The closer connection between Google Ads and Google Business Profile highlights the growing overlap between paid local advertising and local SEO.

A complete and accurately maintained Google Business Profile can support:

• Visibility in Google Maps
• Local organic search performance
• Customer trust
• Review acquisition
• Local Services campaign information
• Consistent business details across Google

Businesses should no longer treat Google Business Profile as a listing that only needs occasional updates.

It is becoming a central business asset that can influence organic discovery, paid advertising and customer conversion.

Our View: Simpler Management, but More Dependence on Automation

Moving Local Services Ads into Google Ads should make campaign access and lead management more convenient, particularly for businesses and agencies already managing multiple Google Ads campaign types.

The automatic Google Business Profile connection may also reduce duplicated updates and improve consistency.

However, the move introduces greater reliance on automated bidding and campaign-level optimisation.

Removing manual cost-per-lead controls and category-level Target CPA settings may reduce flexibility for businesses with services that have significantly different margins and customer values.

The Performance Max label may also create confusion. Businesses must understand that these specialised campaigns remain pay-per-lead Local Services campaigns with Search and Maps reach, rather than conventional Performance Max campaigns operating across every Google advertising channel.

The businesses most likely to benefit will be those with:

• Accurate Google Business Profiles
• Strong customer reviews
• Clear service categories
• Reliable lead-response processes
• Well-organised conversion data
• Consistent campaign monitoring

Do You Need Help Preparing Your Google Ads Account?

Google Ads is becoming more automated, but successful campaigns still require the right account structure, accurate conversion tracking, high-quality business information and ongoing commercial analysis.

GK Web Agency helps Australian businesses manage Google Ads, Local SEO and Google Business Profile strategies with a focus on generating qualified enquiries rather than simply increasing clicks or impressions.

We can review your existing Google Ads and local marketing setup, identify tracking or campaign-structure issues and develop a strategy based on your services, target locations and lead values.

Speak with GK Web Agency about preparing your business for the next generation of Google local advertising.

Request a Google Ads consultation

Frequently Asked Questions

Is Google shutting down Local Services Ads?

No. Google is moving Local Services Ads campaign management into the main Google Ads platform. The advertising format and pay-per-lead model will continue for eligible businesses.

Will Local Services Ads become normal Performance Max campaigns?

No. Although Google will classify the migrated campaigns as Performance Max campaigns with pay-per-lead goals, they will remain limited to eligible placements on Google Search and Google Maps.

Will Local Services Ads appear on YouTube or Display?

No. Google says the migrated Local Services campaigns will not expand to YouTube, Display, Gmail or Discover.

Will advertisers still pay per lead?

Yes. Eligible advertisers will continue paying for valid lead interactions rather than standard ad clicks.

Will Local Services campaigns require keywords?

No. The campaigns will remain keywordless and will use approved service information, locations and connected business data to match advertisers with relevant searches.

When will the migration begin?

The first migration phase is scheduled to begin for selected US advertisers in August 2026.

When will Australian Local Services Ads accounts migrate?

Google currently expects non-US accounts to begin transitioning during 2027. Individual advertisers should wait for an official migration notification from Google before assuming a specific migration date.

Will historical Local Services Ads reports transfer?

No. Google says historical performance reports will not transfer into Google Ads. Advertisers should download important reports before migration.

Will my existing campaign settings transfer?

Google intends to automatically transfer eligible locations, service types, categories, budgets, schedules, photos and other campaign settings. Advertisers should still audit the campaign after migration.

Does a business still need a Google Business Profile?

A complete and accurate Google Business Profile will become even more important because supported business information will sync directly with the migrated campaign.